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IPO Advisory Services by Affluence Advisory Pvt Ltd

An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time.

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IPO Advisory Services by Affluence Advisory Pvt Ltd

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  1. Initial Public Offering (“IPO”) Services

  2. GOING PUBLIC Overview An Initial Public Offering (“IPO”) transforms a business from a privately owned and operated entity into one that is owned by public shareholders q An IPO is a significant stage in the growth of many businesses, as it provides them with access to the public capital market and also increases their credibility and exposure q The Company commits substantial resources to the IPO process and build the quality management team, robust financial and business infrastructure, corporate governance and investor relations strategy that will attract the right investors q Affluence CA and CS team provides FINE BALANCE to the Company (Finance and Accounts, CS and Legal team) by shouldering the responsibilities to provide bundle of information and documentations and certificates to several agencies/intermediaries involved in this time sensitive journey. On the journey of transformation of a private company into a public company, success depends a great deal on a coordinated team effort by the internal management and the advisory team. q

  3. KEY REGULATORY FRAMEWORK IN IPO Fiscal & FOREX LAWs Companies Act Securities Law q Chapter III (Section 23-40) read with Companies (Prospectus & Allotment of Securities) Rules, 2014 q Issue of Further Securities q SEBI (ICDR) Regulations 2018 (Chapter II read with para A of Schedule VI) q Securities Contracts (Regulations) Rules 1957 (SCRR) q SEBI (LODR) Regulations 2015 i.e. Listing Regulations q SEBI (PIT) Regulations 2015 q Depositories Act & Regulations q Income Tax Act 1961 – Capital Gain Tax (Section 45, 48, 111A, 112, 112A etc.) q Securities Transaction Tax (STT) q Stamp Duty Act & Rules q FEM (Non-Debt Instruments) Rules, 2019 read with RBI Master direction on FDI

  4. IPO PROCESS FLOW Listing Company Listing of securities on the Exchange Monies transferred to the Bank Approve basis of allotment from Stock Exchange Allotment by the Board Refund money and credit of shares Payment of commission File listing application q q q Appointment of BRLM’s q q Filing of Prospectus with RoC Pre- Investors bid for shares SEBI marketing Comments Pricing & Allocation BRLM conducts due diligence Roadshows Drafting / Filing of DRHP 1-on-1 meetings arranged with institutional investors Group presentations made for retail investors Signing of Syndicate Agreement & Escrow Agreement Transfer of shares to Escrow A/c Filing of RHP with ROC q Understand the revenue model Identify key selling points Build case for valuation Make the company “IPO Ready” Identify key concerns Good disclosures about business strategy, objects, management and financial condition Emphasize key marketing highlights of the equity story Articulate positioning Bids received from investors are entered in the online system Book is analysed after the Book has been built To execute underwriting Agreement q q q q q q q q q q q q q q q

  5. INDICATIVE IPO TIMELINE T T + 5 T + 10 T + 60 T + 61 T + 62 Board Meeting to approve issue Kick off meeting Research Presentation Due Diligence & Drafting Publication of Research Report File DRHP with SEBI + SE T + 146 T + 145 T + 130 T + 129 T + 122 T + 77 File RHP with ROC Receive SEBI go- ahead to RHP File RHP with SEBI Incorporate SEBI comments in RHP Receive SEBI comments on DRHP In-principle approval from SEs T + 161 T + 162 T + 163 T + 168 T + 177 T + 180 Roadshows Anchor Investor Issue Opens Issue closes Allotment Transfer funds from Public Issue A/c to Company / Offeror A/c Note: Timelines may alter depending on preparedness of the Company, Market sentiments (secondary and primary) & SEBI & SE clearance #Price band to announced at least five working days before the opening of the bid

  6. HOW CAN AFFLUENCE HELP? As “Go to Guy”, we shoulder all the work responsibilities with the Company team to complete the time bound task. Legal Counsels Escrow Bankers Book Runners’ Legal Counsel Auditors Issuer Company IPO Grading Agency BRLM Affluence Printers Advertising Agency Broker / Syndicate SCCBs Registrars Arrangement Co-ordination

  7. IPO STAGES We at Affluence support the Company on every phase of this IPO journey by deputing our team for the IPO project. 1 2 3 4 IPO Evaluation Stage IPO Panning Stage IPO Execution Stage Post IPO T T T T T T T T

  8. SERVICE OFFERINGS IPO Execution Post issue compliances IPO Evaluation IPO Planning q Support strategic initiative and pre IPO transactions eg, acquisition or group restructuring q Establish financial reporting procedures q Address ownership and tax issues q Adopt leading corporate governance practice and reporting process q Deciding the tentative time line q Address Compliance related issues q Documentation and filing for Restructuring of the Board and committees q Start building business plan and financial model q Implement financial reporting procedure q Finalize the timetable q Assist in due diligence activities including collation of materials, data room management and coordinating with all the Parties q Address due diligence issues q Co-ordination and execution support, status updates, key action areas, attending observations of documents q Assist in preparation of Restated Financial Information q Collation of other financial information, key performance indicators in relevant formats q Guidance on Accounting Policies and Assistance on Accounts closing q Providing relevant information for drafting the offer document q Obtaining internal and external approvals, statutory filings and disclosures. q Advise on compliance with the requirements of the board of directors and the audit committee q Advise on Corporate Governance requirements in respect of the listed entity and its subsidiaries q Guidance and support for disclosure of financial information and results q Provide ICDR and other compliance checklist to ensure compliance with listing agreements

  9. WHY AFFLUENCE Well experienced and efficient multidisciplinary team Help to achieve the ambitious time tables of an IPO dashboard “Focus on being a well Governed Company, not just on going public” Client First Policy Create space for Company team and Management to focus on Core issues requires their involvement Solution based approach.

  10. Thank You Affluence Advisory Private Limited 503-504, K L Accolade, 6thRoad, Santacruz (East) Mumbai 400 055, 022 26102465 | 022 26116901 Web : www.affluence.net.in Email : contact@affluence.net.in This Profile is strictly confidential and has been prepared exclusively for recipient. It should not be used, reproduced or circulated for any other purpose, in whole or in part, without the prior written consent of Affluence Advisory Pvt Ltd. Such consent will only be given after full consideration of the circumstances at the time.

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